Mutual fund dealers may be able to keep their personal corporations after all, as the Mutual Fund Dealers Association of Canada is proposing amendments to allow them to retain these structures, subject to certain conditions.

The Ontario Securities Commission has published proposed MFDA rule amendments for comment, which would permit remuneration to be directed to unregistered corporations, provided that certain conditions designed to address investor protection concerns are met.

The conditions include that the dealer, the rep and the corporation have entered into an agreement that preserves liability; that the dealer supervise the arrangement; and that they provide securities regulators with access to all their books and records.

MFDA rules currently require that commissions be paid directly to reps themselves; however, that rule has been suspended in certain provinces since the MFDA was launched. The latest suspension is set to expire on March 31, 2010, with a requirement for the MFDA to submit its proposed amendments by May 31, 2009.

The MFDA board approved the proposed amendments on June 4. Comments are due Sept. 17.